Operations and Information Management

127 views 7:07 am 0 Comments August 12, 2023

OmegaCo is a medium-sized company that produces high-quality handmade fruit juice for customers in their own country. Most of these customers are small retailers and cafes that have used OmegaCo for a number of years, normally placing orders by telephone and paying by cash on delivery. There is little visibility of future orders, which means that the lead time for delivery can be over two weeks, and this means that some orders are cancelled at short notice due to changes in customer demand. In addition, OmegaCo has seen the market for their products reduced by nearly 20% over the last year, as consumers react to the increasing rate of inflation and the consequences of the Covid-19 pandemic. Currently, OmegaCo relies on a small number of local suppliers for the materials (various fruits, sugar, glass bottles etc) they require and struggles to maintain effective relationships due to their difficulty in managing the supply and demand of their own products.

As OmegaCo has a strong brand image, the company has recently been bought by ZetaCo, which is a large organisation as they can see future opportunities in competing in global, more price-sensitive markets. This will require a change in strategy to one that focuses on the efficiency of production and the development of stronger and more professional customer and supplier relationships. A new focus will be needed to improve OmegaCo’s manufacturing, marketing, and supply chain capabilities and capacity. ZetaCo is prepared to invest significantly in making these changes, particularly through digital transformation, as their initial market research shows that there is a sizeable market for quality products, but costs need to be managed effectively and efficiently.

Tags: , , , , , , , , , ,